ABSTRACT:The aim of the present work was improvement of ocular bioavailability of Loteprednol Etabonate, a novel drug, by prolonging its residence time in precorneal area. One of the methods is to achieve this by formulation of the solid lipid nanoparticles and then dispersing it into an in-situ gelling system. The Solid Lipid Nanoparticle was prepared by Hot Homogenisation Method. Drug/Excipient interaction was determined by Differential Scanning Calorimetry study. The Particle size and Zeta potential of solid lipid nanoparticles was measured with other evaluating parameter. Simultaneously in-situ gel was also prepared and dispersed these Solid lipid nanoparticles into in-situ gelling system. In vitro drug diffusion study was carried out from the nanosuspension using Franz diffusion cell apparatus. The release data were subjected to different models in order to evaluate their release kinetics and mechanisms. The drug diffusion was found 89% in 24 hrs. The present study conclude that it is possible to prepare solid lipid nanoparticle of Loteprednol Etabonate (LE) with desired criteria which increases the dissolution of drug and improves drug absorption and hence improve drug effect.